They show a quarter of us are not putting away enough money for the future, while almost a third of those aged 45 to 54 have made no start on their nest egg.

Experts estimate that pensioners will need an income of £20,000 a year to enjoy a comfortable, no-frills retirement.

That means accumulating a £400,000 pension pot.

But the statistics show the majority will fall woefully short of this target.

It means millions will be forced to rely on the State pension, currently £113 a week.

Last night David Harrison, managing partner of financial services firm True Potential, said: “Unless things change dramatically we will return to an age when people did not retire at all – they died working.

“When I left school in the late Sixties I was confidently told my State pension would give me a quarter of my average earnings. That’s not going to happen ever again.

“The crux is we don’t save anywhere near enough.

“We need to grab people by the scruff of the neck and tell them that, regardless of what amount they have in their pension pot, it’s not likely to be near enough.”

The average employee saves just £2,338 a year.

Over a 45-year working life that would amount to a pension pot of £105,228, providing a retirement income of £5,261 a year.

For those retiring in 15 years’ time the £400,000 currently required will rocket to £507,500 based on annual inflation remaining at 1.6 per cent.

If inflation rises, as is likely, then workers hoping for a £20,000 annual income when they retire in 2029 would need to accumulate a pot nearer £600,000.

We need to grab people by the scruff of the neck and tell them that, regardless of what amount they have in their pension pot, it’s not likely to be near enough

David Harrison

Pensions analysts say the country is lurching towards a Doomsday scenario where the elderly are forced to live in poverty.

Only 23 per cent of Britons are contributing towards a pension but they are not saving nearly enough.

Former Saga chief and pensions guru Ros Altmann said: “If things carry on like this, anyone who can’t keep working can expect to live a very poor old age.

“We need a culture of saving and that starts at school where children can learn about the cost of living and saving alongside the facts of life.

“It might just sow the seeds that help address this problem.

”The stark choice for Britain’s army of 30 million workers is to save vast chunks of their monthly income or invest in products such as stocks, shares and ISAs in the hope of beating inflation.

Independent financial expert Yvonne Goodwin said: “If people are not saving how will they pay the utility bills in old age?

“It seems likely most will have very little left over, if anything at all.

“The current state of play is worrying and educating the population about good financial planning has to start in school.”

Pensions minister Steve Webb said: “Our older people have worked hard and paid into the system all their lives and that is why we have ringfenced pensioner benefits including the triple-lock, which guarantees payments will rise every year in line with wages, prices or by 2.5 per cent, whichever is higher.

“Only this year we have passed a law that will introduce a flat-rate pension which will provide a fair and decent income for decades to come, worth around £7,500 a year.

“On top of this, the success of automatic enrolment means millions of people are saving into a workplace pension for the first time.”

Borrowing using overdrafts and personal loans has risen for the first time in more than five years.

In a sign of growing consumer confidence, the British Bankers’ Association has reported net borrowing up by 0.5 per cent in March.